Musgrave agrees €57m deal to sell UK division

The Musgrave Group has reached agreement to sell its loss-making UK operations for €57m, despite managing to slash the division’s losses by 67% last year.

This time last year, the Cork-based grocery and foodservice group, which owns the SuperValu and Centra chains, announced the commencement of a restructuring programme for its British operations after losses there, and integration costs regarding the takeover of Superquinn, dragged underlying profits of €60m down to a total group loss of €95m for 2013.

The group is set to publish its 2014 accounts next month, but yesterday said that losses in the past year at its UK operations, which cover the Budgens and Londis brands, fell from £21m to £7m. It also announced that agreement has been reached to sell the UK operations to leading British cash and carry/wholesale group, Booker for £40m (€57m).